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		SENATE 
		BILL WOULD REQUIRE REGULATORS TO JUMP MORE HURDLES BEFORE IMPOSING NEW 
		LICENSING RESTRICTIONS 
		
		Illinois Policy Institute/ 
		Vincent Caruso 
		
		Regulatory regimes in Illinois often 
		discourage workforce participation without enhancing public welfare. One 
		Senate bill, however, would require regulators to demonstrate the 
		necessity of new rules before imposing them on workers. 
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 One bill floating through the General Assembly would subject 
regulators themselves to inspection. 
 
Senate Bill 2776, filed Feb. 2 by state Sen. Pam Althoff, R-McHenry, establishes 
a system through which new professional regulations and licensing requirements 
must withstand independent scrutiny before becoming law. 
 
The Regulatory Sunrise Review Act would require that an independent report weigh 
the necessity of pending regulation. The report would explicitly identify 
whether the absence of regulation over a given profession poses any “potential 
harm or threat to the public” and further provide “specific examples of the harm 
or threat identified.” 
  Critically, the report would offer lawmakers a perspective on the potential 
economic trade-offs caused by new regulation under review. SB 2776 would require 
these reports “address the social and economic costs and benefits of licensure,” 
and provide insight into proposed regulations’ potential impact on consumer 
prices and the labor market. 
 
The right to earn a living isn’t always a given. 
 
For many professionals seeking – or simply continuing – employment, one can 
expect to navigate a complex landscape of regulatory hurdles. Regulations 
involving occupational licensure, educational requirements and entrance fees 
impede economic activity while often delivering no measurable improvements to 
public health and safety. 
 
This problem is exemplified by the story of Lisa Creason. Creason is a Decatur 
mom who suffered the consequences of a 2011 law that barred ex-offenders like 
her from acquiring a license to work as a registered nurse. Even though Creason 
had worked as a nursing assistant for more than a decade and passed all of her 
nursing tests, the law prevented her from acquiring the license needed to pursue 
her dream and move her family into a safer neighborhood. After years of fighting 
for reform, changes to the law allowing Creason and others like her to seek 
health care licensure took effect in 2017. 
 
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			The city of Chicago’s 
			thinning food truck population also offers an instructive example of 
			the degree to which aggressive regulatory regimes can suppress 
			workforce participation and discourage entrepreneurial drive. 
			While some policymakers 
			are inclined to defend the often costly and complex nature of 
			various occupational regulations as necessary to uphold consumer 
			quality, the opposite is often true. Enforcing onerous barriers to 
			entry against industry newcomers means market competition is 
			limited, and thus quality can be compromised. 
			 
			Worse, these barriers overwhelmingly limit low-income individuals 
			aspiring to climb up the economic ladder. But this isn’t an 
			unfortunate byproduct of protecting public welfare as much as it is 
			a function of the system working as intended. Licensing boards are 
			often composed of industry incumbents, who have an incentive to use 
			licensure as a buffer against competition. 
			 
			Moreover, a host of mechanisms through which firms and individuals 
			can demonstrate quality assurance exist in the private sector. 
			Fortunately, SB 2776 takes these into account, requiring reports on 
			proposed regulations consider whether “market competition and 
			third-party or consumer-created ratings and reviews” should suffice 
			to remedy a supposed public disservice. 
			 
			During a period in which the Land of Lincoln is experiencing labor 
			force drawbacks, it’s encouraging that some lawmakers in Springfield 
			have sought to explore ways to ease more Illinoisans’ efforts in 
			achieving the security of employment. 
			 
			Measures similar to Althoff’s include a trio of licensing reform 
			proposals – House Bills 5208, 5210 and 5211 – introduced into the 
			House by state Rep. Tom Demmer, R-Dixon, and Senate Bill 2439, filed 
			by state Sen. Scott M. Bennett, D-Champaign, which would prevent the 
			state from revoking one’s occupational license for defaulting on 
			student loan debt. 
			 
			By advancing the Regulatory Sunrise Review Act, lawmakers would 
			likewise advance the occupational prospects of Illinoisans. 
			
			
			
            
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